The Palatka daily news. (Palatka, Fla.) 1884-1888, 1887-05-19
WISDOM FROM A RAILROAD MAN.
The Interstate Commerce EX
animation at Washington.
The Schedules Mostly Characterized By Stupidity
Better q Dozen Thriving Towns than
One Great City.

Sohlic tflc VI
guments upon the application of the
Queen and Crescent Railway system, for
permanent suspension of the fourth
section of the Interstate Commerce law.
John C. Gault, General Manager of the sys-
tenn, first addressed the Commission He
described the line of the Queen and Cres-
cent roads, pointing out its general prox-
unity to the Mississippi River and other
water routes. The system, he said, had
considerable business which it would
like to retain and to this end he hoped To
obtain permanent relief from water
competition
Chairman Cooley inquired at what
points they sought relief. Mr.. Gault re-
piled that they wished to be relieved
from this competition where it affected
the system. He read petition prepared
by the officers of the road setting forth
the effect of water competitor in reduc-
ing cotton rates, with a view to demon
strating the justice of their request to
have the temporary suspension made
permanent. 1t was stated in the paper
has been to make daily such rates as may
be necessary to enable them to secure
the traffic. The chief grounds for ask
ing relief arises from the fact that the
roads desire to participate to a certain
extent in this traffic, which they cannot
afford to do if they are required to re-
duce all of their rates in proportion to
those necessary to meet water competi-
ton.
Chairman Cooley asked if in fixing
rates any account was taken of the eff
feet upon towns or were they fixed
simply in the interest of the roads.
Something had been said about compe-
tition as a reason why rates should he
cut down.
Mr.. Gault replied that his road had
little to do with fixing rates. That was
done by the Southern Railway Associa-
ton. He did not wholly approve of the
system that governed the regulation of
these rates. He believed in fixing rates
that would be just to all and he would
rather have a dozen thriving towns on
his road than one large city. His road
was willing and anxious to give the law
a fair trial and only asked to be relieved
from water competition; .hat meant the
Ohio and Mississippi Rivers CHIEFLY.
In answer to Commissioner Bragg, the
speaker explained, by illustration, his
reason for holding that the system of fix
ing rates followed by the Southern Rail
way Association, which made every
local station a competitive point re-
suited in very much higher rates, and
was characterized in some cases by stu
pidity. To the chairman, Mr.. Gault
ed his company did not propose to make
any local rate between Cincinnati and
Atlanta higher than the through rate.
Cotton was, he said, about the only inter
est he thought of which had been
favored with special rates The
roads would be glad to have
pig iron in the special arrangement max
ing the rates dependent upon the market
prlce of iron. This could be done with
out violating the long and short haul
clauses. He did not believe that any
special concession was necessary to de-
velop any large lumber industry of the
South. Lumber was in great demand,
North, and the business was constantly
increasing. Michigan car builders con-
sumed great quantities of it. He did
not think that there was anything that
the pig iron or lumber men need worry
about at all.
The Chairman inquired if the rates
were fixed in relation to their effect up
on particular towns.
MIR. Gault-''The management of the
Southern roads in regard to the
system of the rates is peculiar to the
South. When the country was in pow
erty after the war, the planters had to
borrow money to put in their crops
The larger towns made loans and
through that advantage were enable to
control the trade and acquire the bene-
fits of low rates"
The Chairman-''But you think the
time has come when that system should
cease" Mr.. Gault-''Yes."
The Chairman-"Is there no other
competition than water competition that
would justify the intervention of the
commission? Suppose State road, free
from the jurisdiction Of the Commission,
should push an inter State road; suppose
the Interstate road was on the border of
Canada:'
Mr.. Gault-'.Where there are no
water rates we would not ask for relief.
1 can't speak advisedly with reference to
Canadian competition, but my general
belief, where there were other elements
beyond water traffic in competition, is
that the road had no right to ask
relief. If the competitors did business
at a cheap rate the road should do it as
cheaply. 1 desire to be understood that
1 do not antagonize the petitions by
other Southern railroad companies.
The Chairman THE commission
does not understand that you have en-
deavored to do any such thing"
A TOWN DISSEMINATED AGAINST.
Representative Cabell, of Virginia APP
peared for the Board of Trade of Dan
vile, Va, and made complaint against
the Richmond and Danville Railroad.
Since that road had acquired the con-
troll of the Virgin MIA Midland, he said,
the rates had been greatly advanced
and the interests of the town ruined.
The Board charged that the Richmond
and Danville, the Virginia Midland
and other Western and Northern con-
nections have violated the first, third
and other sections of the Interstate law
by means of direct and indirect draw.